Tuesday, December 21, 2010

Exited FKLI On 10 Points Target

Date of entry: 21 Dec 2010
Long FKLI - Double Break Up
I initiated long FKLI Dec future contract at 1502.5 after it spiked up to 1507 and retraced to 1502.5.
Reason to buy 1) Broke up of the recent high (blue line on chart)
Reason to buy 2) Broke up of the high of moving average.

Date of exit: 21 Dec 2010 - Same Day
Exited FKLI On 10 Points Target
My target of 10 points gain was reached at 1513.5 after deducting 1 point for commission. The price could go higher, but I prefer to confirm my profit and reenter later if the market continue the upside.

The balance of my account is RM 34,275 after the profit of RM 1000
(10points x RM50 x 2contracts = RM 1000)
(The details of my account is at My Future Trading Account Records 2010 )


  1. Hi Abel,

    What sort of money management rules do you practise?


  2. Hi A,

    1) I use RM5000 as deposit for entry contract (normal deposit needed for holding overnight is RM2500 - double the required amount)
    2) Stop Loss: All trade MUST have a stop loss; Place stop loss the same moment I am in trade.
    3) Maximum I can loss per contract in any trade is 15 points (15points x RM50 = RM750)

    I hope I answer your question.



  3. Hi Abel

    Can I say that your target profit for FKLI is 10 points per lot and ur maximum loss per contract irrespective of qty is only 15 points?

    TQVM for sharing.


  4. hi abel, pardon me but isn't this strategy runs counter to the book by joe - trading by the book? having said that, of course, each trader has his own flavor for risk... also based on avg true range...lengchai6

  5. Hi Anony,

    I use trailing stop all the time. The stop loss could range from 1 to 15 points depending on the last two candle. It does not mean that I put 15 points for the stop loss all the time. 15 points is my maximum point that I am willing to loss.

    Hi LengChai6,
    My trailing stop strategy is based on Joe Ross but my risk ratio is kind of my own judgement; 10 points gain against 15 points risk.
    As I mentioned, 15 points is my maximum risk but my usual trailing stop loss would not go to that far.

    Thank you you all for your comments,